Amazon can test drones, but with restrictions – FAA

Federal authorities have finally agreed to allow Amazon to test delivery drones in the US. The e-tail giant hopes to revolutionize local delivery services, but restrictions on drone use, mean it could be a while before it becomes commercially viable.

Citing the need to “ensure the next evolution in package
delivery happens in the United States first," the Federal
Aviation Administration (FAA) notified Amazon on Thursday that it
would be allowed to test unmanned aerial vehicles (UAV) over the
next two years, under certain conditions.

According to the FAA’s letter, the drones shall not exceed speeds of
100 mph, (160kph), fly above 400 feet (122 meters), or weigh more
than 55 pounds (25 kilograms). This will include their payload,
while they are also not allowed to leave the operator’s line of
sight. This final provision may prove to be the biggest challenge
to deploying the UAVs commercially.

How the hell is Amazon going to get any mileage out of drone
delivery, if FAA says the drones must always stay in line of
sight of pilot?

Last month, when the FAA approved Amazon’s initial request to
test drone deliveries, the company said federal regulators had
taken so long to reply the technology named in the application
was already obsolete. Instead, Amazon has been testing its UAVs
in British Columbia, just north of the US border, having obtained
permission from Canada earlier this year.

The company is hoping to use eight-rotor drones in a program
dubbed “Prime Air,” envisioning same-day delivery of packages
under five pounds (2.2 kilograms) to customers within a 10-mile
(16-kilometer) radius of an Amazon warehouse.

According to a 2014 study by the New York-based financial
research company ARK Invest, the cost of such deliveries could be
as little as one dollar. The report also suggests deliveries
might arrive in as little as 30 minutes.

Basing the study on the existing technology and prices, ARK
estimated it would cost Amazon $100 million to buy the drones and
another $300 million to use them for delivering 400 million
orders annually.

Currently, Amazon charges $7.99 for one-hour delivery of certain
products in several cities, including Baltimore, Dallas, Miami
and New York. That program, launched in December 2014, is called
Prime Now.

Earlier this week, the FAA also approved the use of UAVs by three
insurance giants – AIG, State Farm and USAA – indicating that
widespread commercial use of drones could be just around the
corner, if and when the FAA drops the requirement that the
vehicles remain within the operator’s line of sight.

Some reports have suggested that drones be outfitted with cameras
or radar, so that operators can stay in control
even when the UAVs go out of sight, but there is no word on
whether the FAA sees this as a viable solution.